ACC Consumer Finance Corp. announces second quarter earnings.SAN DIEGO--(BUSINESS WIRE)--July 29, 1996--ACC Consumer Finance Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ACCI ACCI Australian Chamber of Commerce and Industry ACCI American Council on Consumer Interests ACCI Association of Crafts & Creative Industries ACCI American Consortium of Certified Interpreters ACCI African Center for Crop Improvement ACCI Air Compliance Consultants Inc. ) Monday announced the results of the quarter ended June 30, 1996. ACCI's net income per share was 16 cents for the quarter ended June 30, 1996, and 28 cents for the six-month period ended June 30, 1996. Delinquencies and charge-offs during the quarter reflected seasonal trends. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net charge-offs during the quarter ended June 30, 1996, decreased to 3.40 percent of the average balance of the portfolio of contracts serviced, including contracts owned and contracts sold and serviced by ACCI, from 4.40 percent in the prior quarter. Contracts which were 31 days or more delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. as of June 30, 1996, increased to 3.96 percent (excluding repossessions on hand) of contracts owned and contracts sold and serviced. The ratio of contracts which were 61 days or more delinquent was 1.15 percent. The combined allowance for losses on contracts held for investment and the recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. loss allowance embedded Inserted into. See embedded system. in the excess servicing receivables was $12.9 million. The combined allowance represented 7.5 percent of the contracts serviced (including contracts owned and contracts sold and serviced) as of June 30, 1996, increasing from 6.6 percent as of March 31, 1996. ACCI increased its purchase activity significantly. During the quarter ended June 30, 1996, the company purchased $45 million of automobile installment contracts installment contract n. an agreement in which payments of money, delivery of goods or performance of services are to be made in a series of payments, deliveries or performances, usually on specific dates or upon certain happenings. , compared to $25 million during the comparable quarter a year earlier, reflecting an 80 percent increase. The average discount and the average interest rate on the contracts purchased during the quarter ended June 30, 1996, were 5.16 percent and 20.72 percent, respectively. Both figures represent modest increases from the 4.87 percent average discount and the 20.65 percent average interest rate on contracts purchased during the quarter ended March 31, 1996. ACCI serviced $173 million of automobile installment contracts as of June 30, 1996. The company securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. $45.5 million of contracts during the quarter ended June 30, 1996, in connection with the issuance of 1996-B asset-backed security Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. transaction. The company recorded a gain on sale of approximately $3.7 million or 8.1 percent on the securitized contacts. The tables below present the results of operations and selected balance sheet amounts: -0-
RESULTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Net interest income $1,103,136 $ 793,393 $2,034,604 $2,080,441
Loan loss provision (199,921) 211,377 (348,784) (10,348)
Net interest income after
loan losses 903,215 1,004,770 1,685,820 2,070,093
Servicing income 962,868 469,974 1,811,747 500,717
Gain on sale of contracts 3,683,023 3,913,477 6,584,609 3,913,477
Total revenues 5,549,106 5,388,221 10,082,176 6,484,287
Expenses (3,587,549) (2,535,003) (6,763,069) (4,149,601)
Net income before taxes 1,961,557 2,853,218 3,319,107 2,334,686
Tax expense (824,000) (35,000) (1,394,000) (35,000)
Net income 1,137,557 2,818,218 1,925,107 2,299,686
Average shares outstanding 7,155,098 5,697,427 6,789,722 5,370,517 Fully diluted net income per share $ 0.16 $ 0.49 $ 0.28 $ 0.43 -0-
SELECTED BALANCE SHEET AMOUNTS
As of June 30, As of Dec. 31,
1996 1995
Contracts held for sale $ 22,365,001 $ 28,187,778 Contracts held for investment 220,830 509,388 Asset-backed securities 6,684,022 3,910,080 Excess servicing receivables 9,365,618 5,590,878 Total assets $ 53,942,978 $ 46,908,938 Total liabilities $ 32,721,312 $ 40,624,138 Shareholders' equity and preferred stock $ 21,221,666 $ 6,284,800 Book value per share $2.56 $1.03 The net income per share for the three-month and six-month periods ended June 30, 1995, was 49 cents and 43 cents, respectively. The periods in 1995 are not directly comparable to the periods in 1996 in that ACCI incurred a loss in the three-month period ended March 31, 1995, and securitized approximately two times the amount of contracts acquired in the three-month period ended June 30, 1995. In addition, ACCI recorded virtually no tax provision in the six-month period ended June 30, 1995, and had more outstanding shares in the quarter ended June 30, 1996, principally as a result of ACCI's initial public offering. ACCI's net income before taxes increased 42 percent in the six-month period ended June 30, 1996, compared with the six-month period ended June 30, 1995. Net interest income was comparable during the six-month period in 1996 compared with the same period in 1995. The loan loss provision increased during the six-month period in 1996 compared with the same period in 1995. The increase occurred because the provision in the six-month period in 1995 was nominal. Servicing income during the six-month period ended June 30, 1996, was $1.8 million, a 262 percent increase over the same period during 1995. The gain on sale of contracts was $6.6 million in the six-month period ended June 30, 1996, a 68 percent increase over the same period in 1995. The significant increase in servicing income and the gain on sale of contracts reflect the substantial expansion of ACCI's contract acquisition and asset-backed securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. programs. ACCI's expenses increased to $6.8 million during the six-month period ended June 30, 1996, compared with $4.1 million during the same period in 1995. The increase in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. reflects the substantial increase in origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real and servicing activity which has occurred since June 30, 1995. ACCI specializes in the indirect financing of automobile installment contracts purchased primarily from factory franchised automobile dealers for consumers who have limited access to traditional sources of financing for the vehicle purchases. The company purchases these contracts through its four regional credit centers in Atlanta; Dallas; Newark, Del.; and San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. . The company will open its fifth regional credit center in Miami on Aug. 1, 1996. The company currently services contracts in 37 states and actively markets its program to dealers in Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Missouri, Nevada, New Jersey, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Oklahoma, Oregon, Pennsylvania, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Tennessee, Texas, Virginia, Washington and West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. . ACCI will conduct a conference call on July 29, 1996 at 9:00 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT . The telephone number required to access the call is 800/260-0718. CONTACT: ACC See adaptive cruise control. Rellen Stewart, 619/793-6300 |
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